How to cope with financial stress
Are you under severe financial stress? This can happen to anyone. You could struggle with a debt, delayed payment, overdue bills or urgent purchase and many more. Our lives revolve around our finance. Now, how can one cope effectively under financial stress? Read on.
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There are many strategies that can ensure you cope properly under financial stress. These are:
[b]1. Identify and isolate the root cause[/b]
Let us liken financial stress to an illness. In order to treat an illness properly, then accurate diagnosis is sacrosanct. Failure to diagnose the ailment properly may lead to wrong treatment or medication, and this could potentially worsen the ailment. Visualize a scenario where a doctor prescribes Paracetamol for a chronic viral infection. This will not only waste precious time, this could lead to death from the obviously untreated viral ailment.
Therefore, in order to cope properly under any financial stress, it is necessary to know where the stress is originating from. These could be that you're struggling with a debt, or set of heavy debts, a past bad financial habit or decision, a huge expense, education costs, or worry over lack of emergency savings or insurance of some sort. All of these and more could lead to impactful financial stress. Identifying them will make the choice of amelioration steps more purposeful.
[b]2. Budgeting time![/b]
At this stage, you need to take stock and know what is available to plan with and what is not. Working with a budget will give clearer scope and give better application of your limited financial resources.
As you embark on this budgeting move, remember to cut down on unnecessary spending, see to expenses you can reduce and ensure emergency savings is catered for.
[b]3. Focus on the good side[/b]
Focusing on problems can lead to extreme anxiety and mental/psychological stress. However, focusing on the positive and being grateful for what you have can alleviate the stress. and this will lead to fresher perspectives.
This is linked to gratefulness too. Appreciating what you have -- salary, a job, a business, a loving family -- could lead to a more wholesome approach to tackle any financial problem that is causing stress.
[b]4. Take action - in the right direction[/b]
Working with previously set budget, action is next. Finances will not just fix themselves by being idle. You need to take steps, practical steps. Pay down debts, take cheap loans, sell of items to raise money, get second job, start a business or side hustle, negotiate better terms, or stop bad money habits taht are leaking your pocket - all these represent practical steps needed to arrest any financial stress. Take steps peculiar and suitable to your circumstance.
[b]5. Give it the time and be consistent[/b]
Do not expect overnight results, everything needs time to fall into proper place. Same with finance.
However, as you give it the time to adjust, a point of warning!!! Ensure you are consistent, so that as you take one step forward, you dont take 4 backwards in your financial journey.
If you are working with a strict budget, make sure you truly consistently cut down on unnecessary spending, that you are consistently saving, and that you truly say goodbye to bad money habits like impulse buying, gambling, and others.
Remember, if the doctor mentioned earlier prescribes the right medication but the victim fails to follow the regimens judiciously, this may lead to worse health condition, and sometimes a drug-resistant strain of the pathogen.
Consistency!
Thanks for reading. Feel free to add more....
